Rightmove Shares Rise on REA Group Bid Interest

By Anthony O. Goriainoff

Rightmove shares rose Monday, leading the FTSE 100 index risers, after Australia's REA Group said it was considering a cash-and-share offer for the U.K. company that would create a combined company worth $25 billion.

Shares at 0722 GMT were up 130.80 pence, or 24%, at 686.60 pence, marking its biggest percentage move since 2009.

The Australian real-estate advertiser said Monday that it had yet to speak with U.K.-listed Rightmove over any offer and wasn't certain of making a bid within the 28-day deadline specified by the U.K.'s takeover code.

Rightmove didn't immediately respond to requests for comment when approached by Dow Jones Newswires.

REA said it saw a significant opportunity to create shareholder value by combining both advertisers and highlighted the potential for strong margins, significant cash generation, and shareholder returns. It didn't give any financial details.

REA is 61% owned by News Corp., the parent company of Dow Jones & Co., publisher of The Wall Street Journal and Dow Jones Newswires.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

September 02, 2024 03:43 ET (07:43 GMT)

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